Gulf states weigh first meeting with Iran since war began to discuss Strait of Hormuz: Report | World News

A six-member bloc of Gulf states is considering a meeting with Iranian officials next week to discuss the future of the Strait of Hormuz, in what would be the first such gathering since the war began more than six months ago.Oman is seeking to bring together the foreign ministers of the Gulf Cooperation Council and Iran on Monday in Salalah, a city in southern Oman, according to a Bloomberg report. The meeting has not yet been confirmed. The report added that escalating fighting between Saudi-backed forces and the Houthis, an Iran-supported group based in neighboring Yemen, could complicate the plans.Also Read | Shifting sands & ‘strategic hedging’ in the Gulf: How the countries are looking beyond the US More on the meetingIt also remains unclear whether all members of the bloc, including Saudi Arabia, the United Arab Emirates, Qatar and Oman, would attend, the report said.Oman’s foreign ministry did not immediately respond to a request for comment. The Financial Times was the first to report on the proposed meeting.The Houthis are advancing toward Red Sea coastal areas near the strategic Bab el-Mandeb Strait, raising concerns that the group could tighten its control over a crucial maritime trade route. The group has disrupted shipping and oil markets in recent years, and the threat of renewed disruption could give Iran leverage in talks with its Arab neighbors.Also Read | Houthis seize Yemen’s Mocha port, raise threat to key global shipping route: ReportWhat is happening?The Bab el-Mandeb chokepoint has become increasingly important for oil markets following the closure of the Strait of Hormuz, which forced Saudi Arabia to reroute oil shipments to export terminals on its western coast. A major disruption to shipping through the Red Sea would put additional pressure on the kingdom, the world’s largest oil producer.The Houthis have continued launching missiles and drones at towns in southwestern Saudi Arabia, damaging energy facilities, even as their ground offensive in Yemen advances. The attacks increase the risk of Saudi Arabia becoming more deeply involved in the conflict and could further strain its ties with Iran.Tehran has insisted on maintaining control of the Strait of Hormuz and has spent several weeks negotiating with Oman over a framework for managing maritime traffic. Such an arrangement would likely include the payment of fees, an idea strongly opposed by the US and Gulf states.It remains uncertain whether GCC members would agree to a temporary arrangement that could allow maritime traffic through the strait to resume.Oil prices have surged this week as prospects for an early end to the US-Iran war have dimmed. US diesel prices climbed above $6 a gallon for the first time, increasing concerns about further energy-driven inflation ahead of November’s midterm elections.Brent crude is on track for its biggest weekly gain since July, despite falling more than 3% on Friday to around $104 a barrel after the International Energy Agency warned of a worsening outlook for demand.The US-Iran conflict has reached a stalemate, with military strikes between the two sides over control of the Strait of Hormuz remaining sporadic and relatively low-intensity. Both Tehran and Washington are preparing for the conflict to last for months or potentially longer, Bloomberg has reported, with neither side willing to make concessions that could pave the way for a return to peace talks.The Strait of Hormuz, a critical route for global oil, natural gas and other commodity supplies, was effectively closed after the US and Israel began bombing Iran in late February. Washington is seeking to pressure Tehran into restoring free passage for ships through the strait, using a naval blockade as leverage.US military operations have put further pressure on Iran’s economy, with the rial weakening sharply and inflation accelerating to nearly 90%. However, Iran’s leadership has signaled that it will not back down over control of the strait or return to negotiations unless President Donald Trump lifts the blockade.Tehran has also made clear that it will continue retaliating against US attacks on its ships and territory.Meanwhile, Qatar reported its largest quarterly fiscal deficit in nearly a decade in the second quarter, while Saudi Arabia’s economy contracted during the same period.